Attention! Financial scam targeting Less Wrong users

Viliam_Bur

39 Attention! Financial scam targeting Less Wrong users

14th May 2016

2 min read

39

Recently, multiple suspicious user accounts were created on Less Wrong. These accounts don't post any content in the forum. Instead, they are used only to send private messages to the existing users.

Many users have received a copy of the same message, but different variants exist, too. Here are the examples I know about. If you have received a different variant, please post it in a comment below this article:

Hi good day. My boss is interested on donating to MIRI's project and he is wondering if he could send money through you and you donate to miri through your company and thus accelertaing the value created. He wants to use "match donations" as a way of donating thats why he is looking for people in companies like you. I want to discuss more about this so if you could see this message please give me a reply. Thank you!

hi. ive made 500k+ the last half year on esport betting and i can show proof. i was a great poker player before that so i have reason to believe i am good and wellsuited at this. i want to offer free education to one of the efw people that have their priorities straight in this world and will work towards minimising existential risk. the higher intelligence the better. ultimately i would like to offload some work to someone because currently i am gettin gquite a bit burnt out and i would like to study finance, and having someone take advantage of the incredible ineffeciencies in this area is of huge importance. i would like to discuss this with someone and how to make it real, and have exchange of thoughts on all of the aspects on how to best do it. i can post proof and make donations to miri to show im serious so that we or someone else could have a discussion about it

I don't know yet about anyone who replied and got scammed, so this is all based on indirect evidence. If you got scammed, please tell me. If you are ashamed, I can publish your story anonymously. Your story could help other potential victims.

Most likely, the scheme is the following:

The scammer will send you money.
Then they will ask some of the money back because they changed their mind, or they mistakenly sent you more than they wanted, or their financial situation suddenly changed, or whatever.
After receiving the money from you, they will flag the original transaction as a fraud, so they get back the money they originally sent you, plus the money you sent them back. Then they disappear, or it will turn out they used a stolen identity, etc.

(Thanks to ChristianKl for explaining the system in the Open Thread.)

If you replied to the original message and now you are already in the middle of the process, please inform your bank as soon as possible! Even if the step 2 didn't happen yet, so you can still get out without losing money, warning your bank about the scammer could help other potential victims.

Warning: If you have already received a check or a payment confirmation, and someone is asking you to send the overpayment back quickly, do not send anything. The check or the payment confirmation is fake, and the goal is to make you send money before you find out. (Thanks to qsz for explaining.)

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39 Attention! Financial scam targeting Less Wrong users

by Viliam_Bur

14th May 2016

2 min read

39

Recently, multiple suspicious user accounts were created on Less Wrong. These accounts don't post any content in the forum. Instead, they are used only to send private messages to the existing users.

Hi good day. My boss is interested on donating to MIRI's project and he is wondering if he could send money through you and you donate to miri through your company and thus accelertaing the value created. He wants to use "match donations" as a way of donating thats why he is looking for people in companies like you. I want to discuss more about this so if you could see this message please give me a reply. Thank you!

hi. ive made 500k+ the last half year on esport betting and i can show proof. i was a great poker player before that so i have reason to believe i am good and wellsuited at this. i want to offer free education to one of the efw people that have their priorities straight in this world and will work towards minimising existential risk. the higher intelligence the better. ultimately i would like to offload some work to someone because currently i am gettin gquite a bit burnt out and i would like to study finance, and having someone take advantage of the incredible ineffeciencies in this area is of huge importance. i would like to discuss this with someone and how to make it real, and have exchange of thoughts on all of the aspects on how to best do it. i can post proof and make donations to miri to show im serious so that we or someone else could have a discussion about it

Most likely, the scheme is the following:

The scammer will send you money.
Then they will ask some of the money back because they changed their mind, or they mistakenly sent you more than they wanted, or their financial situation suddenly changed, or whatever.
After receiving the money from you, they will flag the original transaction as a fraud, so they get back the money they originally sent you, plus the money you sent them back. Then they disappear, or it will turn out they used a stolen identity, etc.

(Thanks to ChristianKl for explaining the system in the Open Thread.)

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kephasp10y40

We have a pretty stupid banking system if you can cancel a transaction after the target has had time to make a transaction back to you. Or it should be straitghforward and fee-less to cancel that second transaction as a consequence.

CynicalOptimist10y50

"We have a pretty stupid banking system if you can..."

Yes, we do.

It's a complicated system that developed slowly, piece by piece, influenced by legislation, commercial pressures, other (contradictory) commercial pressures, and customers' needs. The need for backwards compatibility makes it impossible to rip up the old system and start again, and no one person is in charge of designing it. Naturally it's messed up and has inconsistencies.

---Meta comment: At first I was writing this with the intention of saying, basically: "Duh! isn't that ob... (read more)

0Viliam_Bur10y

I am not an American, and the American ways of transferring money are mysterious to me. When I want to send money from point A to point B, I log into a web page, fill in the required data, confirm the data, and in a day or two the money is there. If I understand it correctly, the American way to do this is to personally go to the bank, take a paper form, write the data on the paper, deliver the paper to the target, and the target must take the paper to their bank. It was a huge surprise to learn this, because I automatically assumed that the American ways of dealing with money must be more advanced and more convenient, just because of having more experience with internet and capitalism in general. But now I guess that the American system is simply a victim of its own inertia: these methods were invented and became a norm before the internet, and now people are resistent to the change, because no one wants to experiment with the new methods when their own money is involved. Still, I agree that the second transaction should be cancellable after the first transaction was cancelled. Not sure what is the trick here. Maybe the scammer wants the part of their money returned using a different method (one that does not allow cancelling, or has shorter deadlines). Maybe the plan is that most people will not notice the cancelling of the first transaction, or be busy enough that they miss the deadline for cancelling the second one. Maybe there is some psychological trick preventing the victim from cancelling. Really, I don't know (and not being familiar with the American system, even if I read an explanation, there is a chance I would misunderstand it).

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